The author is a Forbes contributor. The opinions expressed are those of the writer.

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Money (Photo credit: 401K)

It’s a common misconception that funding for early-stage tech companies is easy to come by. The money is flowing, people say, just come up with an idea, and investors will come running.

This could not be further from the truth.

Nowadays, the only people who can raise money from professional investors with an idea on a napkin are founders with previous successful exits. While I have yet to raise funds for my own company (I joined Aviary after it had already raised a series B), I have gained some exposure to the early-stage investing space by helping to source a few deals for investors.

From the beginning of 2011 to the present, I’ve noticed a pronounced difference between companies that have been able to raise funds and those that have not. In order to raise seed-stage funding you need all or most of the following:

1) A great team – usually a combination of people in product, business, tech or design.

3) The first version of your product. In tech vernacular, this is known as a minimum viable product, alpha, or version 1.

4) The ability to demonstrate that your product is gaining traction. The only metrics that matter: revenue and active user base.

A great team and a big market have always been necessary to raise seed funding; it’s usually the team that the investors will put money behind. In 2012 (and moving forward) the biggest changes will come in terms of product availability and proven traction.

Before 2012, a general product idea, some wireframes, and a soft business plan might suffice. You generally did not need a live product deployed to raise seed capital.